NO!
Do not close the dispute until you have the money in your Paypal account or in your credit card account. He won't pay you and you cannot open another dispute.
Go to the Dispute and escalate to a Claim.
If he does not refund immediately, and it takes seconds, and no, an open Dispute does not affect this, Paypal will refund you and go after him for their money.
There will be other fallout for him.